The Scottish government has suggested that cutting corporation tax in an independent Scotland would lead to a "jobs boom".

The statement was made at an event to launch a 200-page document setting out the economic policy choices available if voters said "yes" to independence.

The SNP-run government believes Scots will be better off if they back change in next year's referendum.

However, opponents have insisted a go-alone Scotland would struggle to cope.

Former chancellor and leader of the pro-Union Better Together campaign, Alistair Darling, said that in an independent Scotland the burden of the growing elderly would "fall on a population of five million, instead of 60 million [as part of the UK]".

“Start Quote

To be clear, today was not a draft manifesto for the SNP - nor even a final list of Scottish government priorities. It was a menu, a declaration of what might be possible under independence, whoever might be in power. ”

It is the last of a series of documents ahead of next week's publication of the Scottish government's White Paper on independence.

It has set out the entire range of economic powers which would be available under independence - along with the argument that sensitive, sensible use of those powers would produce policies better tailored to Scotland's needs.

Mr Salmond said: "Scotland can more than afford to be a successful independent country, with a thriving economy and opportunities for everyone. We have vast natural resources and huge human talent - but those advantages have been stifled by having our economic policy run by Westminster.

Where might the jobs come from?

Increasing Scotland's productivity performance by 1% could boost employment by about 21,000 over the long-term.

Increasing Scotland's economic activity rate of one percentage point would be equivalent to an extra 30,000 plus people in the labour market.

Reducing corporation tax, and changing the tax system in general, could create approximately 27,000 jobs.

An increase in Scottish exports by 50% could create more than 100,000 jobs in the long-term.

Source: Scottish government

"The one-size-fits-all economic policies of successive Westminster governments have failed and are continuing to fail the people of Scotland. We perform well at the moment but we should be doing so much better.

"A simple glance at many other European countries of similar size to Scotland, some without the natural advantages Scotland has, shows that we have lagged behind their growth rates for decades.

"Independence will give us the chance to build an economy that takes advantage of Scotland's unique strengths and size to deliver a more outward focussed, fairer and resilient economy, boosting revenues and creating many thousands of more jobs."

Mr Salmond said the paper set out key policy areas post-independence, including;

Establishing an industrial strategy which rebalances the economy and diversifies Scotland's industrial base - promoting manufacturing, innovation and boosting productivity. (The SNP believes that increasing Scotland's productivity performance by 1% has the potential to boost employment by about 21,000 over the long-term).

Promoting participation in the labour market by delivering more efficient employability, welfare and skills programmes and transforming child care. (The SNP says an increase in Scotland's economic activity rate of one percentage point would be equivalent to an extra 30,000 plus people in the labour market).

Targeting measures to reduce outflow of labour and attract skilled workers to enhance Scotland's population growth. The Scottish government says this would build on the current projections of 9% growth over the 25 year period of 2012 to 2037.

Using tax incentives to support growth in key sectors, such as tourism and the creative industries, and target areas such as reforming Air Passenger Duty.

Using targeted tax measures, such as a reduction in corporation tax, to counterbalance the pull of London and the South East of England. The Scottish government says the initiative could create approximately 27,000 jobs.

And boosting the internationalisation and brand recognition of the Scottish economy. The Scottish government says a 50% increase in the value of Scottish exports could boost output by about £5bn and create more than 100,000 jobs in the long-term.

The IFS forecast assumes a decline in North Sea oil revenues and a population ageing more rapidly than in the rest of the United Kingdom.

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It warned an independent Scotland would need to cut spending or increase taxes for its finances to be sustainable in the long term.

It said Scotland would face a "fiscal gap" of 1.9% of national income, compared to 0.8% for the UK.

Better Together's Mr Darling said: "Yesterday the independent and impartial Institute of Fiscal Studies reminded the people of Scotland what John Swinney has been privately telling his cabinet colleagues for months.

When, Who, What?

They will be asked the straight "yes/no" question: "Should Scotland be an independent country?

"If we were to leave the UK we would face the prospect of big tax rises, damaging cuts to public services - or a combination of the two.

"Today, the Nationalists have chosen to ignore reality and to offer up a type of fantasy economics that beggars belief.

"Instead of admitting the obvious challenges caused by the rise in the number of elderly people, the fall in the number of people of working age and the eventual decline in North Sea oil, the Nationalists have reverted to type.

"Their response is to deny that there are any problems and to say, yet again, that the experts are wrong."

Comment number 428.

Fat Lady Sings19th November 2013 - 13:01

So 24 hours ago independence would be bad for the Scottish economy said one person or another, today independence would be good for the Scottish economy said one person or another... Could they bring the vote forward please, not sure I can put up with this for a whole year... #scottishfatigue

Comment number 427.

Save Our Selves19th November 2013 - 13:00

"cutting corporation tax to attract investment."..how thick is this as an idea? Corporation tax is rarely paid by any investor in the British Isles - which is why we are so stuffed economically. Starbucks, Amazon, G4S, Atos all illustrate how to avoid paying any corporation tax by registering elsewhere.

"Paying more tax per head" illustrates how people - not companies, get fleeced by govts

Comment number 424.

WhoamI19th November 2013 - 13:00

Sadly, once gone, it will be for good. The likes of Spain, Portugal, Italy and Ireland will veto EU membership as another risky country. The rest of the UK will vote against a return to Scotland in the UK.

Comment number 423.

ElvisBishop19th November 2013 - 12:59

So Scotland thinks that if they chose to keep the sterling currency the rest of the UK have no say in the matter. It will be for the UK to decide if we wish to allow a foreign country to share our currency. What if the Scottish economy were to collapse, as has happened to countries in the euro zone, will the UK have to bail them out to prevent a collapse of sterling?

Comment number 422.

Demad19th November 2013 - 12:59

What will actually happen:Both sides of the borders MPs will be allocated £B's out of the tax money to investigate and promote independance or unity.There will be evaluations, quangos all over.Result:The money will be wasted on expensive rallys for the rich & expenses, the MPs will be seen to agree on 'compromises' and nothing really will change..

Comment number 416.

Rational19th November 2013 - 12:58

Scotland generates 9.6% of the UK's wealth and spends 9.3%. Every year for the past 30 it has generated more wealth per capita than the rest of the UK put together. These are straightforward numbers so can we please move on from the affordability / subsidy argument? Why would David Cameron want to subsidise a whole country when he won't subsidise a disabled person's spare bedroom?

Comment number 415.

Rabbac19th November 2013 - 12:58

12. paul stewart I live in Glasgow. I'm not anti-English. Please don't class us all with the knuckle draggers that the SNP gov are hoping, vote for Independence just because they watched Braveheart the night before.

Really Paul it's knuckle draggers like yourself who continually vote for Labour in Glasgow even though they have ran it into the ground for generations.. Wake up and grow up!

Comment number 413.

751719th November 2013 - 12:53

BBC, is this in fact a Scottish Government report as you state? Or was it written by the Fiscal Commission? Who sits on the Fiscal Commission? We heard an awful lot yesterday about the independence of the IFS...

Comment number 412.

Tom19th November 2013 - 12:58

Scotish gas & oil etc is owned by the UK NOT Scotland. no matter how it was funded - it was fudned by UK money and UK companies NOT Scotiish companies or Scottish money as they currnetly do not exist. It will need ot be shared equally

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